Business or not

[Jason Hardin]

I'm a little confused on the whole "should I start an LLC or a business in any form" topic. A lot of people on here say to not start a business right off the bat but then a lot of the information pertains to having a business.

Example: Claims against you. If we start our first flip and just use our names and something happens then we are liable for it correct? Whereas, if we have an LLC then we are a little more covered and the risk is less correct? So why wouldn't I want to start a business right off the bat?

That's just one example while reading on the forums here but there are more things like taxes and what not.

Can some of you that have been flipping houses chime in and maybe explain what you did in the beginning? Did you start your business right off or did you wait? And maybe the reasoning behind it?

Jason

[Al Williamson]

Hey @Jason Hardin and @Chabu Nsokoshi

Let me throw this out...

1 - Yep, having a business makes more things tax deductible, but the paperwork will slow your momentum. Momentum, getting started is everything. I would worry about tax shelters after you cashing in on a few deals. A tiny block will stop a train from getting started - but the train will crush the block to pieces once its in motion. Do you feel me.

2 - Liability - this is a joke. It's sound great on paper. But if you do something fraudulent or unsafe, a good lawyer will find a way to pierce your veil and get your personal assets. So, there are many reasons to form a LLC - I just think protect against liability is low on that list. So - just get going and sweat the LLC later.

Hope that helps. 

Get out there and make some money already!